How to Do a Gap Analysis: Current State vs Future State

May 30, 2026

A gap analysis identifies the difference between where your organisation is today (current state) and where it needs to be (future state). It is one of the most requested deliverables in business analysis because it turns a vague "we need to improve" into a concrete, prioritised action plan.

Step 1: Define the future state first Counterintuitively, start with where you want to be, not where you are. Without a clear target, you cannot measure a gap. Write the future state as specific, measurable outcomes. For example: "Invoices are approved within 24 hours, with zero manual data entry."

Step 2: Document the current state honestly Map how things actually work today, not how the process manual says they should. Use interviews, observation, and real data. For example: "Invoices currently take 5 to 7 days, with three manual re-keying steps and a 12 percent error rate."

Step 3: Identify and score the gaps For each area, describe the gap and rate its severity. A simple table works well:

Area: Approval time. Current: 5-7 days. Future: 24 hours. Gap severity: High. Area: Data entry. Current: Manual, 3 steps. Future: Automated. Gap severity: High. Area: Error rate. Current: 12 percent. Future: Under 2 percent. Gap severity: Medium.

Step 4: Find the root causes A gap is a symptom. Ask why it exists. The approval delay might be caused by paper routing, unclear authority limits, or a single overloaded approver. Use the "5 Whys" technique to dig past the surface.

Step 5: Recommend prioritised actions For each gap, propose a specific action and rank by impact versus effort. Quick wins (high impact, low effort) come first. This gives stakeholders a clear roadmap rather than an overwhelming wish list.

The deliverable Your finished gap analysis should let any executive see, on one page, where the organisation stands, where it needs to go, what is in the way, and what to do first.

Our Process Mapping Kit and AI Readiness Kit both include gap analysis templates with severity scoring built in.